AIG picks Hong Kong-raised Hancock as chief executive

Hong Kong-raised Peter Hancock has been promoted to chief executive of American International Group as the firm focuses on growth after his predecessor stabilised the insurer and paid back a 2008 government bailout.

Hancock oversees property-casualty insurance and will also become president on September 1, the New York-based firm said. He replaces Robert Benmosche.

"AIG is no longer burning down, and the challenge for AIG and for Peter as [chief executive] is to continue to drive the transformation," said Josh Stirling, an analyst at Sanford C. Bernstein.

Hancock takes over a firm that has shrunk by half since 2008 as Benmosche sold assets and cut jobs to simplify the business and repay a rescue that swelled to US$182.3 billion. The firm is now focused on global property-casualty coverage and US life insurance and retirement products.

Hancock joined AIG in 2010 to oversee finance and risk. In 2011, he was promoted to run the property-casualty business, an operation that became increasingly important to AIG as the company sold non-US life insurers and a plane-leasing unit.

"Property and casualty is not only our largest business, but it's our most complex business and it's the one that can most affect the future success of AIG," chairman Steve Miller said.

Hancock said he planned to focus on customer segments and products where AIG was "properly rewarded" for taking risks. "And to do that we are investing in research and development to really understand emerging risks better," he said.